News

NYDFS ISSUES PROPOSED REGULATION ALLOWING COLLECTION OF DATA CONCERNING BANKING SERVICES OFFERED TO MWBE BUSINESS

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NYDFS has announced a proposed regulation allowing banks to collect data concerning banking services offered to Minority and Women-Owned Businesses (MWBE) under the Community Reinvestment Act.  From Superintendent Harris:  “Banks must meet the needs of all consumers, including minority and women business owners, who historically have been denied fair access to credit,” said Superintendent of … Read more

NYDFS TO RELEASE GUIDANCE FOR REGULATED BANKS DOING CRYPTO

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According to an interview given by NYDFS Superintendent Adrienne A. Harris to the Wall Street Journal, NYDFS will release guidance for regulated banks that interact with customers handling crypto or want to engage in the business themselves.  Superintendent Harris to WSJ: “Where some regulators have said, “No, banks, don’t engage in this at all,” we’ve … Read more

NYDFS SUPERINTENDENT SPEAKS ON REGULATORY REACH

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NYDFS Superintendent Adrienne A. Harris spoke to the Times Union newspaper about the regulatory reach of the agency and challenges in staffing:  “[Harris] spent the first six months on the job conducting a staff analysis, prompting her to conclude that the agency is understaffed, especially considering its regulatory reach.” More on the interview in the … Read more

NASDAQ TO ENTER CRYPTO CUSTODY BUSINESS AND SEEK NYDFS LICENSE

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Law360 reports that NASDAQ will be jumping into the crypto custody business for institutional investors.   NYDFS will be reviewing their application, according to Law360. Coindesk reporting on this may be found here:  https://www.coindesk.com/business/2022/09/20/nasdaq-starts-crypto-custody-services-for-institutional-clients/  

OCC FINDS HEIGHTENED RISK TO FINANCIAL INSTITUTIONS BASED ON SHORTAGE OF QUALIFIED COMPLIANCE PROFESSIONALS

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Strong compliance personnel remain one of the best investments for a financial institution, and an ongoing challenge, per the OCC: “Compliance risk remains heightened…. [T]he OCC has observed an increase in the competition for compliance subject matter experts, at both the bank management and staff levels.” The OCC Report may be found here:   https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/files/semiannual-risk-perspective-spring-2022.html  

NYDFS ISSUES FIRST-IN-THE-NATION STABLECOIN GUIDANCE

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Its finally here:  first-in-the-nation stablecoin guidance for regulated cryptocurrency entities.  Some highlights: Backing and Redeemability: The stablecoin must be fully backed by a Reserve of assets, meaning that the market value of the Reserve is at least equal to the nominal value of all outstanding units of the stablecoin as of the end of each … Read more

NYDFS SUPERINTENDENT HARRIS SAYS “REGULATORS NEED TO DEVELOP A ’21ST CENTURY FRAMEWORK’ FOR CRYPTO”: AT LINKS 2022 CONFERENCE

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At the Links 2022 Conference, NYDFS Superintendent Adrienne A. Harris stated that “the regulatory agency will triple the size of its virtual currency unit by the end of the year.” Its ambitious — but much needed. Superintendent Harris “said her agency is working to hire additional staff and update its guidance to better deal with … Read more

NYDFS ISSUES GUIDANCE ON USE OF BLOCKCHAIN ANALYTICS BY REGULATED CRYPTO FIRMS

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NYDFS issued guidance concerning the use of blockchain analytics by regulated cryptocurrency firms.  NYDFS stated:  “The purpose of this guidance … is to emphasize to all virtual currency business entities that are either licensed under 23 NYCRR Part 200 or chartered as a limited purpose trust company … the importance of blockchain analytics to effective policies, … Read more

“NYDFS ROUNDUP: CRYPTO, CYBERSECURITY, AND INSURANCE COMPANIES”: MATTHEW LEVINE PUBLISHES ARTICLE IN NEW YORK LAW JOURNAL

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Matthew Levine published his most recent article on NYDFS titled “NYDFS Roundup:  Crypto, Cybersecurity, and Insurance Companies.”  The article begins: “Change has been a constant at the New York State Department of Financial Services.   Since its first Superintendent departed the agency in June 2015, there have been six confirmed and acting Superintendents for DFS.  With … Read more